Connected, automated inventory management and delivery simulated on warehouse background

Ecommerce Platform Shopify Buys Deliverr for $2.1B

The largest acquisition in Shopify history will simplify logistics for merchants of all sizes, making Shopify a one-stop-shop for online merchants.

Last week, ecommerce platform Shopify announced their plans to acquire Deliverr, an ecommerce fulfillment provider, for $2.1 billion. The deal is the largest acquisition in Shopify’s history, providing end-to-end logistics solutions to better serve Shopify merchants of all sizes. Deliverr was founded in 2017 and currently delivers more than 1 million order per month for thousands of merchants across the country.

“From port to porch, we’ll manage a merchant’s inventory and get it to where it needs to go,” said Shopify in a promotional YouTube video. “And we’ll get it there fast with next and two-day shipping. Together, we are transforming the future of fulfillment for everyone.”

“Our goal is to not only level the playing field for independent businesses, but tilt it in their favor—turning their size and agility into their superpower,” said Tobi Lütke, founder and CEO of Shopify. “Together with Deliverr, Shopify Fulfillment Network will give millions of growing businesses access to a simple, powerful logistics platform that will allow them to make their customers happy over and over again.”

Merchant services

In Shopify’s May 5, 2022 announcement, the ecommerce platform outlined the ways in which Deliverr and the Shopify Fulfillment Network (SFN) will benefit merchants.

  • Simplified multichannel inventory management. Merchants will have a single place from which to ship their inventory, regardless of the sales channel where the sale originated, including online stores, brick-and-mortar stores, online marketplaces, and social media platforms (e.g., Facebook, Instagram and TikTok).
  • Demand-driven inventory placement. The SFN and Deliverr systems can predict where customer orders are likely to come from and place products near that demand, so products can be delivered from the nearest location.
  • Reliable two-day and next-day delivery. From coast to coast, the companies utilize a network of warehouse partners, carriers and last mile partners to provide the best service to merchants across the U.S.
  • Flexible, independent logistics services. Merchants can choose the services they need, including storage, freight, inventory preparation and the management of returns.

“Our technology and expertise in inventory management, inventory placement, and demand chain combines perfectly with Shopify’s roadmap, enabling us to now build an end-to-end logistics platform together,” said Harish Abbott, co-founder and CEO of Deliverr. “Shopify has been building the future of merchant-first fulfillment solutions, and our team has a track record of helping businesses of all sizes streamline their operations. We’re excited to join Shopify in their mission to make commerce better for everyone while democratizing shipping and fulfillment for independent entrepreneurs.”

Shop Promise

Shopify also unveiled its new Shop Promise, a new program Shopify is testing in conjunction with the Deliverr acquisition. This benefit allows Shopify merchants using the new logistics services to display an exclusive Shop Promise badge indicating fast, reliable shipping and easy returns and exchanges. The goal of Shop Promise is to help merchants build trust and increase sales with prospective customers.

“Shop Promise guarantees merchants what no other commerce platform can: full ownership of their brand, business intelligence, and customer data,” Shopify said.

In the Shop Promise explainer, the ecommerce platform said that utilizing Shop Promise will not cost merchants or their customers anything. Merchants can apply to be part of the Shop Promise program online at Shopify.com.

Ecommerce platform’s turnkey solution

Shopify will combine their strengths with those of Deliverr and warehouse automation technology from 6 River Systems to provide end-to-end logistics solutions for merchants, regardless of their size or stage of business.

“Our full set of turnkey solutions will connect through Deliverr’s network technology, as well as Shopify’s embedded software and robotics inside both Shopify and partner-operated warehouses. All together, we’re building a fast and reliable fulfillment offering that gives independent merchants of all sizes the ability to meet customer expectations quickly and affordably,” Shopify said.

Insider Take

Since the pandemic began more than two years ago, supply chain disruptions and component and labor shortages have impacted merchants, logistics companies and customers alike. This acquisition by the ecommerce platform can’t overcome every single issue, but it is a step in the right direction for Shopify merchants who have little if any control over deliveries. By offering merchants affordable solutions starting at $29 a month, Shopify is making their subscription services even stickier and more attractive to merchants who want to focus on what they are good at, leaving the rest to the experts.

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